Bureaucratic Regulation of AI: Biden Should Hold Off on Relaxing OMB's Guidelines
The Biden administration is facing a critical decision on how to regulate artificial intelligence (AI) in the United States. According to recent reports, the administration may consider adopting a more cautious approach, similar to that of Europe, which could potentially make the U.S. an AI follower rather than a leader.
This shift in strategy could have significant implications for the U.S. economy, as implementing EU-like new rules could make AI regulation more burdensome and hinder the country's progress in the AI economy. Conversely, a light-touch approach, as advocated by the Trump administration, could unnecessarily speed up AI adoption, making it harder for the U.S. to compete against China.
One of the key considerations for Biden is the precautionary principle. This principle encourages policymakers to take preventive action to avoid potential harm, even if scientific evidence is inconclusive. Biden may consider embracing this principle and rescinding new guidance from the Office of Management and Budget (OMB) that promotes a more flexible, risk-based approach to AI regulation.
The OMB's guidance instructs federal agencies to adopt a tiered approach in regulating AI, with the degree of risk determining the regulatory approach. The guidance also emphasises that agencies do not necessarily need to issue new regulations to address AI risks; they have non-regulatory options such as policy guidance, experiments and pilot programs, and voluntary standards.
However, growing concerns about AI bias in law enforcement, housing, and employment may influence Biden's approach to AI regulation. The administration should avoid limiting the military from using any AI systems, even in disaster recovery, due to potential bias or faults.
The OMB's guidance reaffirms the 10 principles the White House drafted last year for AI regulation, which emphasise the importance of transparency, accountability, and fairness. The guidance also establishes a framework for federal agencies to assess potential regulatory and non-regulatory approaches to emerging AI issues.
The danger is that unnecessary AI regulations could create barriers to AI development and adoption. Market forces, public opinion, tort law, existing laws and regulations, and light-touch targeted interventions can manage AI risks effectively. The OMB's guidance encourages these approaches, as they strike a balance between promoting AI innovation and ensuring safety and fairness.
In conclusion, the Biden administration's approach to AI regulation will play a crucial role in determining the U.S.'s position in the global AI economy. To thrive, the U.S. must resist unnecessary AI regulation and focus on fostering innovation while addressing potential risks effectively.
